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I want to talk a little bit about cruise lines. Right now. Norwegian is embarking on its largest new build order in company history as it looks to surpass the competition. Over the past five years, the company's stock has lagged behind competitors Royal Caribbean and Carnival. The industry as a whole has seen demand rebound while costs continue to climb. Joining us now is Harry Summer, Norwegian Cruise Lines President
and CEO. And Harry, we've been talking about cruises for the entire morning now because Carnival came out with better numbers and expected and yet it's stock also traded down. What do you think the problem is? Why isn't the market embracing you know, better numbers and newer product.
Well, you know, I'm not, first off, nice to be here this morning. Thank you for having me. I'll see, I'm not really here to discuss Carnival's earnings. I think overall the cruise lines have had a tremendous up and stock us included. I think over the last three months of stock is up the most in the industry and we're very, very proud of that consumer demand is robust, the guests love the guests experience. It reflects a tremendous value and a much better experience than hotels and resorts.
And our stock price has seen a run up in the last few months as a result of that.
Well, I mean, the reason I ask about better results is I was just reading in a story that you make more money at Norwegian than any of your competitors in terms of the amount passengers spend on board, right, And that seems to be what investors want. That's what analysts are after. Plus you have higher end, newer ships coming out to court the luxury consumer. That also is what we read that people want. And yet your stock, even though you've had a great three months, has really
underperformed over the longer term. So why aren't investors seeing these products and these results and rewarding you for them.
Listen, we are super passionate about delivering a fantastic onboard guests ex experience, and I think the spending results you've talked about in terms of onboard revenue are reflection of the great experience our guests get on board the ship, that we give them things that they value and are willing to pay for, and we're very super excited about that. Listen, I can't talk about you know, I can't really talk to what happened six months ago or a year ago.
I'm very happy with what our stocks performed the last three four or five months now again out performing all the other stocks in the industry. And our goal is to continue this run by delivering great experiences to our guests and great financial results of the investment community.
Hey, there's certainly a lot more people going on cruises that maybe didn't in the past. I say, my parents are among them. They went on one of your luxury competitors who shall not be named on this program. Even so, this question is for them because they looked around and said, hey, everyone is our age or older. Everyone's in their sixties and older. And that's something you hear about cruise operators.
What do you do to attract the younger generations? And if you can't, is it a problem down the line for this industry?
You know, I think if you look at the industry, there's really a bifurcation. There are a series of luxury lines, perhaps like the ones that your parents went on. We have two luxury lines in our fleet, Oceanna Cruises, which is our entry luxury level product, and Region seven Seat Cruises, which is our ultra luxury product. It's true in that
demographic these cruises are a little bit more expensive. We do tend to attract an oiler clientele, but we also have our contemporary brand, Norwegian Cruise Line, where a large percentage of our guests are forty and younger. We continue to develop amenities, entertainment activities on board the ship that are relevant to those people, and they're absolutely responding that.
The demographic between thirty five and say forty five is our fastest growing demographic for that brand right now, and we continue to focus on that so that we can have a generation, a new generation of people that will cruise over and over and over again. The repeat rate
of these guests are at all time highs. On any given ship, about forty five percent of our guests our repeat customers, which is one of the reasons we announced our Loyalty Match program this morning so people can go between lines and have a great experience, the experience that they deserve.
You have the Oceania, that's the luxury brand that you that you operate a Lura. It's a new boat coming back from its maiden voyage. I think tomorrow. Yes, tell us what's different, what's new? What are you offering consumers that differentiates this boat from you know, other sort of luxury, high end big cruise lines.
So at Oceana Cruizes, we're super passionate about delivering a fantastic guest experience in terms of luxury amenities on board the ship, large cabins and suites, fantastic staff on board, and a large staff to guest ratio, so guests feel like they're being pampered at every single moment. Of course, the bedrock of Oceanna Cruises is the finest cuisine at sea. We win every culinary award out there, and for this new ship, the Alura, we have uped the game even further.
We've reintroduced a French restaurant concept, Jock, which is extremely popular with our guests. We have a new crapery which has f fantastic suites, freshly made all day long crapes, ice cream and things like that, and pastries, but I mean super high and not the normal fair you would get on a contemporary cruise line, and our guests are enthusiastic about it. We have new shopping on board. We have all different We have new experiences in the theater, all the things that our guests value.
And Harry goes back to what Matt was saying that you have this great capture rate of getting guests to spend on the boat itself. But you're talking about some serious luxury offerings, as we were saying, things that are expensive that not everyday people can necessarily afford. You also have more mass premium type offerings too. How does the behavior differ between the more luxury offering and those more mass offerings that you're giving.
You know, Traditionally, on the higher end brand that we have reach It, which is our ultra luxury, it is all inclusive by nature, so guests are getting you know, freeshore excursions, lots of free things, gratuities are included you know, on board, so they're not really paying that much extra
on that brand. Norwegian is a little bit different. We do have some fantastic bundles that guests can buy into, like seventy percent off drinks packages that we're running right now, seventy percent off specially designing and things along those lines, so that guests can get a deal and enjoy luxury amenities on board our contemporary ship, but it tends to be a little bit more on the on board spin side than the ticket price on our contemporary brand.
Hey Harry, this has been great. Thank you so much for joining us. Please come back again soon, Harry Summer of Norwegian Cruise Lines ahead of their maiden voyage of the Alora coming back to the US shores.